In August, inflation was much higher than expected, which was bad news for President Biden, who was trying to diffuse Republican attacks on rising prices.
Throughout the summer, Mr. Biden and his aides celebrate falling gasoline prices. They helped moderate inflation from its high point earlier this year, but it wasn't enough to offset rising rent, food and other prices.
Despite acknowledging the pain of rapid price increases across the economy, Mr. Biden has claimed progress in the fight against inflation, including with the signing last month of an energy, health care and tax bill that Democrats called the Inflation Reduction Act. He called the August data a sign of progress in bringing down inflation.
In a statement released by the White House, Mr. Biden said, "prices have been essentially flat in our country these last two months: that is welcome news for American families."
As Democrats try to retain control of the House and Senate, polls show inflation is hurting them. It's the top issue for voters in national opinion polls, and Americans trust Republicans more to handle inflation and the economy than Democrats.
Consumers and companies have shown signs of hope for the administration. The National Federation of Independent Business reported on Tuesday that its small business optimism index rose in August as inflation anxiety waned. Consumer inflation expectations fell on Monday according to the Federal Reserve Bank of New York.
There were fears that the country would slip into recession in the first half of the year, but strong job growth and consumer spending this summer have put that to rest.
The president sees those developments as a sign that his policies are helping to power the country through a difficult time in the global economy.
The inflation reduction act will be signed by Mr. Biden at the White House on Tuesday. The Republicans voted unanimously against the bill. Mr. Biden will be in Detroit on Wednesday to promote his policies to boost manufacturing.
The inflation report made clear that the country's economic reality is more confusing. Lower-income families are having a hard time with the high food prices. There is a possibility of a railroad strike. If European sanctions force millions of barrels of Russian oil off the global market, the American recovery will be in serious danger.
Americans' wages have struggled to keep pace with inflation, an uncomfortable truth for a president who promised to make real wage gains a centerpiece of his economic program. The Labor Department said Tuesday that inflation-adjusted average hourly earnings went up in August but are still down from a year ago.
After the report, Republicans criticized Mr. Biden. The top Republican on the small business committee said Americans are enduring Biden's economic crisis every day. More and more small businesses and families are questioning their futures because of the inflation of the Democrats.
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